DHS Q2 and 3 2025/26 Performance Reports; Follow-up with FS and Western Cape DHS

In a virtual meeting, the Portfolio Committee on Human Settlements received briefings from the Department of Human Settlements (DHS) on its Quarter 2 and Quarter 3 performance for the 2025/26 financial year, as well as follow-up reports from the Free State and Western Cape Departments of Human Settlements. The Committee noted an overall improvement in DHS performance, with 81% of targets achieved in Quarter 3, compared to Quarter 2. Financial expenditure had also improved, with 72% of the adjusted budget spent. However, persistent challenges remained in the Informal Settlements Programme, underperformance by municipalities in spending grants, and delays in project implementation. Members raised concerns that reported improvements were largely compliance-driven and did not adequately reflect tangible service delivery on the ground. Questions were raised about the effectiveness of oversight over entities, the credibility of performance reporting, and the Department’s ability to track the movement of beneficiaries from informal settlements into formal housing. The Committee further expressed concern about capacity constraints, including officials on suspension, and ongoing delays in key programmes. Municipal under-expenditure, particularly in metropolitan areas, was highlighted as a significant risk to service delivery, with calls for stronger consequence management and intervention measures. During the engagement with the Free State Department, the Committee raised concerns regarding project delays, poor planning, and governance failures. The Vharanani project was identified as a major financial and contractual risk, with ongoing legal disputes and significant claims against the Department. Members questioned accountability for these failures and the absence of consequence management. Concerns were also raised regarding the incomplete Caleb Motshabi infrastructure project, including inadequate initial planning and escalating costs. The Committee highlighted systemic weaknesses in contract management, including failure to appoint engineers and lack of retention mechanisms, which undermined quality assurance. The issue of defective houses for military veterans generated significant discussion, with Members questioning the need for legal opinions where defects were visibly evident. The Department indicated that the matter was complex due to expired warranties and disputes over whether defects were structural or maintenance-related. Legal advice was being sought to determine liability and possible recourse against contractors. Members stressed the need for stronger oversight, improved planning, and stricter accountability measures across all projects. On Western Cape projects, the Committee expressed frustration over prolonged delays, particularly in the Strand housing project, which has seen minimal delivery since its approval in 2007. Concerns were raised about weak planning, poor beneficiary management, and excessive spending on studies without visible outcomes. The Committee also raised concerns about informal settlement upgrading in Breede Valley, including delays in land acquisition, beneficiary verification, and the implementation of temporary relocation areas. Members warned that delays risked further expansion of informal settlements and prolonged displacement of communities. Members repeated calls for improved consequence management, stronger governance, and measurable impact on the ground. The Committee requested that outstanding questions be submitted in writing for formal responses and emphasised the need for continued oversight on the issues raised.